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Answers (6)
- Clay Burke, "MortgagesMadeEasy"
- Contributions:20
It depends on your situation. Everyone is different. If in NY visit NetFundingCorporation.com
I agree with both Rob's, but would add that you CAN have the seller pay for most or all of your closing costs, even if you did put down 20%. Sellers are very willing these days to help with those costs, so take full advantage of it. And as both Rob's say, if it doesn't break your bank to put 20% down, do it. Mortgage insurance is no fun.
- Robert W. Szumilas, "Polaris Funding"
- Contributions:40
I agree with Rob. Put 20% down, as long as it doesn't constitute your whole liquid net worth and wipe you out. That would be my only exception, as you should always have some liquidity. Don't forget about closing costs you have to take into account.
Rob S.
Rob S.
wow chad is really bad at math!!!
put 20% down, you save pmi. Add pmi to your mortgage rate, and the return is actually quite good on your money...
example 200k loan, 10% versus 20% down, 5% fixed rate.
for your extra 10% down, you save:
interest 1000, pmi about another 1000, thus a savings of 2000 a year on an additional investment of 20k... or roughly 10% return... you can't match that on a zero risk investment!
put 20% down, you save pmi. Add pmi to your mortgage rate, and the return is actually quite good on your money...
example 200k loan, 10% versus 20% down, 5% fixed rate.
for your extra 10% down, you save:
interest 1000, pmi about another 1000, thus a savings of 2000 a year on an additional investment of 20k... or roughly 10% return... you can't match that on a zero risk investment!
- Andy Tolbert, "AndyTolbert"
- Contributions:158
It's hard to answer a question like that without more details, but here goes:
If you put down 20% you will not have to worry about mortgage insurance (MI). Many people don't realize it, but it's not so much the lenders that aren't lending right now, it's the MI companies that won't insure the loans, so if you put down less than 20% you may have a hard time getting an approval.
Also, usually it is recommended to put as little down as possible and keep the rest in investments if they're earning more than your interest rate you'll be borrowing at, but with so many investments declining right now, putting it in your home may be a better option.
hope that helps!
Andy Tolbert
Atmor Mortgage
Sanford Florida
If you put down 20% you will not have to worry about mortgage insurance (MI). Many people don't realize it, but it's not so much the lenders that aren't lending right now, it's the MI companies that won't insure the loans, so if you put down less than 20% you may have a hard time getting an approval.
Also, usually it is recommended to put as little down as possible and keep the rest in investments if they're earning more than your interest rate you'll be borrowing at, but with so many investments declining right now, putting it in your home may be a better option.
hope that helps!
Andy Tolbert
Atmor Mortgage
Sanford Florida
- Chad Hagenson, "azchad"
- Contributions:125
Your down payment should be minimal in most cases. It is important to make sure you get the right loan for your needs depending on how long you will hold the home and your monthly budget of course. It is a buyer's market so you now have a great opportunity to get a great price, a great interest rate and often get seller assistance with closing costs. It is ultimately about monthly payment and cash of out pocket. Just make sure you are working with a reputable lender that can explain the options to you and show you the options.
Is it best to put 10% or 20% as a downpayment?
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